South Korea Introduces Regulations for Social Media Influencers Promoting Stocks and Cryptocurrencies

South Korea is taking a closer look at the impact of social media on its financial markets. In an effort to increase transparency, lawmakers have proposed new regulations that would require influencers to disclose their personal holdings and any compensation they receive when promoting stocks or cryptocurrencies.

The proposed law aims to address concerns about 'finfluencers' moving markets without providing clear information about their own positions. Under the new rules, individuals who regularly provide investment advice or promote financial products would be subject to strict reporting obligations.

Mandatory disclosures would include details on the type and size of assets held by the influencer, as well as any payments or benefits linked to their recommendations. The regulations would apply across various online platforms, including social media, broadcasts, and mass publications.